AM 1150 Kelowna - Radio Rallies & Reverals

North American markets opened higher this morning and continue to trend higher on a better than expected US second quarter GDP report. The University of Michigan Consumer Confidence number came in at 68.9, which was down from the previous month, but in-line with expectations. At the economic symposium in Jackson Hole, FED Chairman Ben Bernanke kicked things off this morning, reassuring investors that the FED will "do all it can" to ensure a continued economic recovery, and that it still has plenty of tools in the bag it can use.

Credit Suisse is still cautious on stocks from a technical perspective and still recommends high dividend paying ideas in the small and mid-cap space for three reasons: High dividends are appealing in a low interest rate environment; Dividend investing offers defensive characteristics; Since 1900, dividends have accounted for 92% and 72% of the total return generated by the UK and US stock market, respectively. On the theme of cash capacity, Merger and acquisition activity should continue to present some investment opportunities. Credit Suisse has produced a report on Canadian M&A ideas; If you'd like a copy, ask us yourlifeyourplan.ca or call 250-868-5525.

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